Wow.......looks like they are really trying to push us off the cliff with this BS. I guess when money is lent to these folks and they can no longer afford the payments, the tax payer will again have to bail their asses out.

When will people learn that when they fiddle with crap like this it just makes the problem worse?

quote:“However, it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery,” Bernanke said.

quote:Fed officials have been outspoken about the need for government policy to help the market for single-family homes. This view has brought the Fed into a clash with congressional Republicans, who have argued that market forces should be allowed to work.

quote:“However, it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery,” Bernanke said.

quote:when money is lent to these folks and they can no longer afford the payments

This statement does not necessarily follow. Not saying I agree with him, but he is saying that the standards went from too loose to too tight. I don't think he's advocating for a return to free money for everyone (in the mortgage arena at least).

I dont disagree with what he is saying. What he is saying is not the same as saying to loan money to people that cant afford their payments. There is a lot a B and B- credit out there that can afford homes that they cant get into right now.

quote:“However, it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery,” Bernanke said.

agreed. Just don't package non-A paper as A paper. The problem was how they treated subprime loans on the backend, not the consumer end. They fixed the wrong problem.

Home ownership is a positive good for a society. You want it to be relatively easily to buy a home instead of renting. Home owners have a greater stake in society. Renters can, by their arrangement, take off at nearly any time.

throw out Cuomo's settlement over appraisals. The AMC's have really hurt the housing industry. I understand the need for preventing conflicts of interest of appraisals, but there are ways to do it without going the AMC route.

Do like the VA does. Just randomly assign them to appraisers on the list.

quote:At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency. We will continue to monitor this situation closely.

Do you deny what he was saying was true at that time regarding delinquencies?

Don't get it. He says you can get a mortgage with no credit score. That's a lie. I'm 22 and make around 52k a year, have plenty to put down on a house (due to having no debts to pay), but can't buy one without credit and don't have any easy way to build credit.

This is going to make everyone's day. This guy has had 2 foreclosures and 2 Bankruptcies.

quote:The 61-year-old machine operator at a plastics factory bought a $170,000 house in Moreno Valley this summer that boasts laminate-wood floors and squeaky clean appliances. He got the four-bedroom, two-story house despite a pockmarked credit history. The last time he owned a home, Maldonado refinanced four times and took on a second mortgage. He put a Cadillac and Mercedes-Benz C300W in the driveway and racked up about $45,000 in credit card bills and other debts. His debt-fueled lifestyle ended only when he was forced into bankruptcy. His reentry into homeownership three years later came courtesy of the Federal Housing Administration. The agency has become a major source of cash for so-called rebound buyers — a burgeoning crop of homeowners with past defaults who otherwise would be shut out of the market.